The indirect method of preparing a statement of cash flows
A)is the overwhelming choice of most companies.
B)begins with net income in the operating activities section.
C)will produce the same net figure as the direct method.
D)All of these choices.

Question

Quizplus · Accepted Answer

The indirect method is preferred by most companies, starts with net income for operating activities, and yields the same net cash flow from operating activities as the direct method, making all the provided options correct.

The Indirect Method of Preparing a Statement of Cash Flows